Top CRO and CMO M&A activity of 2017
Take a look back at some of the deals made in 2017:
inVentiv and INC Research
The INC Research, inVentiv Health mega-merger was announced in May of this year. The deal created one of the largest biopharmaceutical outsourcing providers, and “a top three CRO,” INC Research CEO Alistair Macdonald told us at the time.
Macdonald said the merger gives the companies the ability to deliver different models – including full service, hybrid, and FSP – to any size company in any country.
LabCorp and Chiltern
LabCorp acquired Chiltern in July for $1.2bn to create a global contract research organization with more than 20,000 employees.
As part of LabCorp’s Covance segment, the CRO expands its presence globally.
The deal followed months after Chilterns purchase of the Japanese CRO Integrated Development Associates Co. Ltd. (IDA) in a move that CEO Jim Esinhart told us would enable it to grow in the APAC region.
At the beginning of 2017, LabCorp acquired assets of Mount Sinai’s Clinical Outreach Laboratories, adding seven patient service centers to its network.
The company also completed its acquisition of Pathology Associates Medical Laboratories (PAML) in May.
Parexel and Private Equity
Parexel was acquired by the private equity firm Pamplona Capital Management in a deal valued at approximately $5bn.
The acquisition was announced in June.
Prior to this, the CRO purchased The Medical Affairs Company (TMAC) as it looked to strengthen its commercialization and medical affairs services.
Icon and the Mapi Group
Icon expanded tis commercialized offerings this year through its acquisition of the Mapi Group, a real-world evidence, strategic regulatory services, and pharmacovigilance provider.
The Mapi Group also provides market access and language services to support commercialization.
Icon CEO Steve Cutler told us at the time that the company would continue to grow both organically and through its M&A strategy, which focuses on improving its market position in key segments.
Cutler said he expects the CRO to continue to grow as more customer turn to outsourcing.
PRA Health Sciences and Symphony Health Solutions
PRA purchased Symphony Health – which provides data, analytics, and technology solutions – for $530m in August.
PRA CEO Colin Shannon said the deal would provide the CRO with “rich data insights that will allow us to customize our clinical studies to be as unique as the patients who they are designed around.”
Charles River Laboratories and Brains On-Line
The preclinical service provider acquired Brains On-Line, a CRO with sites in San Francisco, The Netherlands, and Germany, for approximately $21m in August.
Brains On-Line provides microdialysis for central nervous system (CNS) research and in vivo efficacy as well as pharmacokinetics testing.
Jim Foster, chairman, president, and CEO of Charles River said the purchase was “a strategic acquisition that enhances our ability to support client’s early-stage drug research in this critical therapeutic area [CNS].”
Concept Life Sciences and Aquila BioMedical
The drug discovery, development, and analytical services company announced its acquisition of the Edinburgh, Scotland-based preclinical CRO in October.
Concept Life Sciences Executive Chairman Michael Fort told us at the time that the move would enable Concept “to articulate a deeper therapy expertise to the whole group now, particularly in immune-oncology, inflammation, and CNS.”
The CMOs
Thermo Fisher and Patheon
Also of significant note this year is Thermo Fisher’s purchase of Patheon for $7.2bn.
The multinational biotechnology product development company announced its intent to purchase the contract development and manufacturing organization (CDMO) in May.
Thermo Fisher raised approximately $1.5bn to fund the acquisition, which was completed in August.
Former Patheon President Michel Lagarde transitioned to president of Thermo Fisher’s pharmaceutical services.
AMRI and Private Equity
Private equity invested significantly in the outsourcing sector in 2017, as exemplified by AMRI's acquisition by The Carlyle Group and affiliates of GTCR in June.
The asset manager and private equity firm acquired the CDMO in a deal worth $21.75 per share.
AMRI President and CEO William Marth told us at the time that the investment would enable the company to “go further, faster.”
Catalent and Cook Pharmica
The delivery technologies and development solutions provider acquired Cook Pharmica for $950m in September.
The deal was designed to expand Catalent’s biologics, cell culture manufacturing, and packaging capabilities.
In the month following, CEO and chairman, John Chiminski reported the company’s FY17 financial results, which he said exceeded expectations.
Looking to 2018, Chiminski also said that the company’s philosophy on M&A won’t change. “We continue to look for acquisitions that enhance our technical differentiation and value to customers,” he said.
